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February Home Prices Jump To 7 Year Highs
Despite the weather, home prices surge more than expected in February (as we presume those who braved the icy or heaty weather were desparate to buy). S&P/Case-Shiller 20-City index rose 0.93% MoM (vs 0.7% exp) and 5.03% YoY (vs 4.70% exp.). San Francisco led the way with a 2.0% MoM surge and Cleveland and Las Vegas were worst with home prices falling.
Nearly mission-accomplished?
After flatlining, and largely unchanged on a sequential basis since August of 2014, the February data saw a modest breakout, with home prices in the 20 City composite rising by 0.50% on the more relevant, unadjusted basis.
On an Y/Y basis, the third consecutive dead cat bounce appears to have started.
From the report:
The National Index rebounded in February, reporting a 0.1% change for the month. Both the 10- and 20-City Composites reported significant month-over-month increases of 0.5%, their largest increase since July 2014. Of the sixteen cities that reported increases, San Francisco and Denver led all cities in February with increases of 2.0%and 1.4%.
Of the 20 tracked MSAs, Cleveland reported the largest drop as prices fell 1.0%, while Las Vegas and
Boston reported declines of -0.3% and -0.2% respectively. On the other hand, San Francisco is surging again: it appears the Chinese money has once again been unlocked, with the new dot com 2.0 generation certainly helping on the high end.
As the report notes,
“Home prices continue to rise and outpace both inflation and wage gains,” said David M. Blitzer, Managing Director and Chairman of the Index Committee at S&P Dow Jones Indices. “The S&P/Case-Shiller National Index has seen 34 consecutive months with positive year-over-year gains; all 20 cities have shown year-over-year gains every month since the end of 2012. While prices are certainly rebounding, only two cities – Denver and Dallas – have surpassed their housing boom peaks. Nationally, prices are almost 10% below the high set in July 2006. Las Vegas fell 61.7% peak to trough and has the farthest to go to set a new high; it is 41.5% below its high. If a complete recovery means new highs all around, we’re not there yet.
“A better sense of where home prices are can be seen by starting in January 2000, before the housing boom accelerated, and looking at real or inflation adjusted numbers. Based on the S&P/Case-Shiller National Home Price Index, prices rose 66.8% before adjusting for inflation from January 2000 to February 2015; adjusted for inflation, this is 27.9% or a 1.7% annual rate. The highest price gain over the last 15 years was in Los Angeles with a 4.3% real annual rate; the lowest was Detroit with a -3.6% real annual rate. While nationally, prices are recovering, new construction of single family homes remains very weak despite low vacancy rates among both renters and owner-occupied homes.”
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because, everything is Awesome!
/s
I can just FEEL the recovery oozing out of every pore of the economy.
Oooo... sorry. That's pus.
The "rate increase" scare is pulling forward some sales before the payment exceeds their budget. Shouldn't last long unless the Fed does raise rates which would guarentee the payment exceeds their unemployment benefits.
I'm no cheerleader for this BS, but FWIW the new construction in my area is going for almost 50% more than the previous peak...and it's selling.
damn, who can afford these homes??
.gov parasites.
tea partiers?
Just a repeat of 2007-2008, except this time will be allot different
In this area it's primarily people in finance, or households with two earners in IT. A lot of those families don't appear to be US citizens.
Of course I'm sure you also have a significant number of people involved in the housing boom itself - agents, commercial developers etc.
that is the question\
it's all like musical chairs, chasing properties faster and faster, bidding wars, foolish crazy appraisals, its crash time revisited.
the prices haven't kept up with income, people have no disposable income much less cash reserves.
i think i'll wait til the bubble bursts probably around October this year.
Laugh track deafening! speakers blowing, eardrums rupturing.
Farcical Insanity
When reading the words: Case - Shiller, it is hard not to keep isolating on the word: Shill
Most awesome...since Lehman!
Lots of homes for sale in Baltimore right now....
can those poor displaced people move in next door to you? (answer: yes they can!)
Vegas must have gotten a lot more snow than San Fran.
Also a fire sale on CVSs
That's what I've heard. They're having a "fire" sale!
Hud homes can now be purchased with only $100 down but only in "selected" areas.
I'm sure Baltimore qualifies
How about Detroit? Can we make the move now?
I love statistics even more when they are only marginally sensitive to raw data.
so moar, then?
Perfect timing to save the market again.
The very definition of sustainable is "Home prices continue to rise and outpace both inflation and wage gains"
Yeah, I give it til the end of the year before this blows up.
Edit: Forgot to give a shout out to my NEO peeps. Cleveland Represent.
WTF does a 'price' matter at all when the Banksters just relaunched fucking NINJA loans??
Lafayette la
oil town ....layoffs and you can buy this gem for the low price of $400k no lakes, mountains ...nothing ...sugar cane ,retail and that's all folks!!
http://www.latter-blum.com/property/403-stonemont-road-lafayette-la-7050...
They ever find that jet?
Oh and working in Ft Walton Florida sucked...back in Lafayette....
LOL....if you had told me that was a picture from a list of condemned hovels I wouldn't have doubted it. Certainly no bubble going on here.
'Let's look back at 2000 era housing bubble for context'....yes, let's....gee what was all that called when it blew up? An irresponsible mistake we'll never make again, just bail us out please? Right back to it again,same actions. Only way to deal with these lunatics is dangle them all from lamp posts.
Got mine under contract...but its not going to raise the average any....
Interesting that DC was up YOY only 1.4%. That was near the lowest on the list. Maybe the money spiget is starting to be closed.
Welcome to the "recovery"bitchez!
no income, no down payment, no pmi, no closing costs MORTGAGE!!!
GOD BLESS AMERICA!!
I knew we could do it again given enough time. Bubbles everywhere. Sit back and wait. It will be epic.
I am speechless. I found it.
L&N Federal Credit Union.
Another genius central bank plan. "Hey, I got it. Let's buy up mortages and keep interest rates at zero long enough to inflate basic housing costs again at rates well beyond people's wage growth for years and years and see if it ends any differently."
The goal is to force the sheep to be debt slaves and set them up the next slaughter. The so-called liberal media should be all over this but they are once again complicit.
liberal will follow a pide piper everytime....can't cure stupidity! They would vote Beyonce as president or Bruce "confused" deJennerite!